Originally posted by Pogues
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I would say the bigger fear was preventing the US from going back into depression, rather than using the military to provide a foundation for future growth. There is a lot that is accidental about how our economies evolved post-war. There were dozens of theories going about at the time so some had to hit the dartboard, but I certainly don't believe that the way the US economy evolved, with its primacy on military power, was by evil design, even if certain of those theories were suggestive of what would occur, and even if many within had evil intent.
Theories aside, the way the US economy developed is in large part unavoidable, and dependent on historical events from 1939-1991. WW2 and the Cold War were real, and up until the early 1970's the mutual distrust was probably warranted. Those combined events meant that the US had no choice but to invest heavily in its military complex. The by-product is of course massive public investment in jobs and industry that cannot be outsourced abroad. This is the critical long term factor for the economy. Since the 1970's, I'd be inclined to say that the power elite, that had been fostered by 40 years of gigantic investment in the military complex, has had an agenda of its own, an agenda that is purely self serving. You can see that clearly now with the massive military intelligence power bloc that is basically now controlling the US government ("we stand together", that was General Alexander's threat/warning to Congress when he first appeared before the congressional committee in the aftermath of the NSA revelations - the "we" being the entire intelligence/military community - interfere with us at your peril).
The math:
1. The US military is the largest employer in the world - more than 1 million direct employees.
2. Private contractors for the US intelligence services alone employ almost as many. In 2010 there were 1,931 private companies in 10000 locations across the US dealing only with intelligence matters. This has since expanded under Obama. It's hard to estimate how many employees are directly employed by the Intelligence services.
3. Private military contractors currently outnumber military personnel in Afghanistan . There is currently a 1:6 private contractors / American soldier ratio. 30,000 of whom are Americans. I've read various wild accounts of the number of private contractors that were in Iraq at the height of the bonanza ... I don't think the US government even knows, and they certainly didn't know what they were up to.
4. Silicon Valley ... the NSA invests billions every year in silicon valley.
5. And we haven't mentioned the thousands of private companies that produce military equipment for the US (and foreign) government(s). Combined with sub-contractors, suppliers and offshoots, you are talking about 10's of millions of jobs that are dependent on the military ... entire towns, cities and communities built around the presence of military bases and production facilities.
6. And of course the collective effect of all this allows the US to be the most influential force in global politics. Trade agreements and alliances are paid for with military contracts or military aid.
That is the state of the economy. The military is the oil. It's the most stable element of the US economy, and most of the jobs within this sector are well paid and domestic, so the money is getting ploughed back into the economy, not going abroad. It's built on 70 years of investing between 20-50% of taxable income into the military-industrial-intelligence complex - like it or not, that's the reality. At the same time, civilian industry has jumped shipped and globalized their production base. Look at Detroit, once the shining beacon of US industry, now a ghost town.
How do you shift the largest military economy in history to a civilian economy, when the civilian foundation of the economy is in terminal decline? It's so much easier to keep the status quo.
Hence ... TERRORISM!
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